Sansad TV Perspective: Investment in Green Technology

In the series Sansad TV Perspective, we bring you an analysis of the discussion featured on the insightful programme ‘Perspective’ on Sansad TV, on various important topics affecting India and also the world. This analysis will help you immensely for the IAS exam, especially the mains exam, where a well-rounded understanding of topics is a prerequisite for writing answers that fetch good marks.

In this article, we feature the discussion on the topic ‘Investment in Green Technology’.

Anchor: Vishal Dahiya 

Participants: 

1. Upendra Tripathy, Former and Founding Director General, ISA
2. Prof. K. A Subramanian, Department of Energy, Science and Engineering, IIT Delhi
3. Guru Inder Mohan Singh, Director & COO, AMPLUS

Context:

The purview of Green Technology is emerging with great significance as the world looks towards a low carbon, resilient and sustainable future. India has provided its prudent steps towards the establishment of Green Technology and committed to taking effective measures to mitigate climate change thereby reducing the carbon footprint and greenhouse gas emissions. India’s attentive move to promote green technology has been acknowledged by the international community at the recently held COP26 in Glasgow.

However, the establishment of green technology requires huge investments accompanied by challenges that make the context interesting to discuss. 

What is Green Technology?

Green technology is the environment-friendly technology that aims at clean energy usage and ensures lesser dependence on fossil fuels with the assistance of scientific methods in energy, agriculture, material science and hydrology. Solar power is the most efficient form of green technology. Green-tech comprises 13% of India’s high-value patents. 

India’s key commitments towards tackling climate change at COP26:

• Meeting 50% of the energy demand through renewable sources of energy
• Increasing its non-fossil fuel energy capacity to 500GW by 2030
•  India’s e-mobility vision for 70% of commercial vehicles, 30% of private cars, 40% of buses and 80% two and three-wheelers by 2030
• Transition to a non-polluting hydrogen economy

Investment Scenario in India’s Renewable Energy Market:

• India ranks fourth in the world in terms of its lucrative renewable energy market with a considerable increase in its power installation capacity.
• In a report released by the Department of Industry and Internal Trade, it was estimated that there is an FDI inflow of US$ 9.83 billion in the non-conventional energy sector between 2000 and 2020. The report also estimates that more than US$ 42 billion have been invested in India’s renewable energy sector since 2014.
• India ranked 3rd in the globe for its renewable energy investments and plans as per the analytics of British Business Energy.
• Currently, the Adani group invests US$ 70 billion in the renewable energy sector and Reliance Industries Ltd. invests US$ 10 billion in renewable energy.
• Therefore, experts believe that India offers a suitable platform for investments and can further proceed through the commercial viability and scalability of projects.
• Green energy initiatives were the key area of focus of budget FY 2021-22 proposing the landmark  National Hydrogen Energy Mission. It prioritized green growth. Promoting green hydrogen would ensure energy security and equity.
• There has been an influx of investment in the electrical vehicle industry recognising India’s e-mobility targets. About 133% growth occurred in the sale of electric vehicles between 2015 and 2021.
• With 7.96 lakhs electric vehicles, India is at the forefront of a revolution.
• India is all set to gather global leadership in the area of solar power with its pioneering efforts towards the  International Solar Alliance.
• International assistance from Green Climate Fund will bolster India’s green initiatives addressing the shortages of funds to promote green technology. 

Going Ahead with Challenges and Opportunity:

In order to achieve the ambitious targets envisaged by India in the international platform by implementing green technology, huge capital investment is required. There lies a challenge with respect to the storage of renewable energies. Recently, the power ministry has come up with a comprehensive framework for promoting energy storage and developing storage facilities. This issue can be resolved with an effective public private partnership.

Therefore, experts suggest policy certainty and planning to provide the investors a stable ground with equal attention to solar, wind and hydrogen energies. This would result in an integrated approach to increase more business and opportunities creating a sustainable environment.

Read more summaries of Perspective in the link.

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